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Shares of pharmaceutical companies were in focus in otherwise subdued market with Nifty Pharma index surging more than 2%, and extending its gains in the past two days on the National Stock Exchange (NSE).

Sun Pharmaceutical Industries, Cadila Healthcare, Dr Reddy’s Laboratories, Cipla, Glenmark Pharmaceuticals and Lupin from the Nifty Pharma index were up in the range of 2% to 3% on the NSE.

Caplin Point Laboratories, Ipca Laboratories, RPG Life Sciences, Sun Pharma Advanced Research (SPARC) and Strides Shasun were up between 3% and 10% on the BSE.

At 09:49 am; Nifty Pharma index, the largest gainer among sectoral indices, was up 2.3% as compared to 0.3% decline in the Nifty 50 index. In past three trading sessions, pharma index was up 4% against 1.4% rise in the benchmark index.

Sun Pharma, the largest gainer among Nifty Pharma index, was up 3.4% to Rs 506 on the NSE. In past two weeks, the stock gained 8% after the after the drug maker reported a better than expected EBITDA (earnings before interest, tax, depreciation and amortisation) margin at 21.1% in March quarter (Q4FY18).

“Management explained that the final date for completion of remediation activities in the submitted CAPA is 2QFY19E. This helps us believe that management has baked in supplies from Halol in 2HFY19 post anticipated resolution. EIR for the plant can be expected anywhere between Jun’18 to Sep’18. Also, the management alluded that the supplies from Halol have improved over previous two quarters,” analysts at Dolat Capital Markets said in result update with ‘buy’ rating on the stock and 12 month target price of Rs 750 per share.

We believe that successful Halol resolution to drive good approvals. The specialty basket to scale up with additional costs going ahead, however this would be next growth engine for the company, the brokerage firm said in a report.